
US Inflation Has Fallen – How Bitcoin and the Crypto Market Are Reacting
April 10, 2025 – Today’s release of the March inflation figures by the U.S. Bureau of Labor Statistics has sent shockwaves throughout the cryptocurrency market.
The year-on-year inflation rate in the United States for March came in at a lower-than-expected 2.4 percent, a significant drop from previous predictions of 2.5 percent. Market analysts had been predicting a slight increase in prices due to ongoing global economic uncertainty and potential trade tensions.
As news of the decreased inflation rate spread, Bitcoin’s price began to fluctuate wildly, initially spiking by approximately 3.1% before subsequently retreating back down to its pre-data release levels. The cryptocurrency’s current value sits at $45,700 per unit, a significant drop from last month’s highs.
Meanwhile, other major cryptocurrencies like Ethereum and Ripple have also experienced significant price swings in the wake of the inflation data release. Ethereum has plummeted by 4.8% while Ripple has seen its value decrease by 3.2%. The broader crypto market is experiencing a significant downturn, with many altcoins suffering from double-digit losses.
Despite this initial volatility, many experts believe that the decline in inflation rates may ultimately have a positive impact on the cryptocurrency space. A reduced threat of inflation could lead to increased investor confidence and potentially attract new capital into the market.
“Today’s data provides a welcome respite for investors who had been bracing themselves for even higher prices,” stated Dr. Lisa Chen, Chief Economist at a prominent financial institution. “In the short-term, we may see some further volatility as traders adjust their positions, but in the long run, this could be a significant positive development for crypto.”
As the market continues to react and adapt to this new data, investors and analysts alike will be closely monitoring any changes in Bitcoin’s price action.
Disclaimer: The information provided is not intended to be used as investment advice.
Source: https://thebitcoinnews.com/us-inflation-has-fallen-how-bitcoin-and-the-crypto-market-are-reacting/